- An extremely aggressive selloff by global stock averages Wednesday and overnight into Thursday reacting to ban on travel from Europe by the Trump administration.
- The major global share indices plunged lower to multi-year lows, through the troughs from Monday, to reinforce the bear moves seen from the gaps lower on Sunday night/ Monday morning.
- Here we focus on future on the German benchmark equity index, the DAX.
DAX future day trade outlook: Bear trend plunge and extension
A Wednesday plunge to a new bear move low and lower again overnight into Thursday, to wipe out the late 2018 swing low at 10268.5 and further long-term supports, reinforcing Monday’s large bear gap at 11092-417.5 and plunge through a key Q1 2019 support at 10856.5, to aim still lower Thursday.
- We see a downside bias for 9723 and the new cycle low at 9600.5; a break below aims for 9510/00 and 9426, maybe key 9290 and even key 9152.5.
- But above 9990 targets 10100/120, which we would look to try to cap; above opens risk up towards 10272.5 and maybe 10356.5.
DAX intermediate-term outlook
The late February plunge below 13219 signalled an intermediate-term shift to a bear trend.
- Downside risks: We see an intermediate-term bear trend and risk for 9290, 9152.5 and 8690.5.
- What changes this? Above 11417.5 sees an intermediate-term range and through 12275.5 an intermediate-term bull trend.
4 Hour DAX future Chart